Wills: The Role of Executor and Executor Bonds Explained
In most families, someone will have to take on the role of executor, at least once in a generation. Why? When a will is written, the testator (aka person creating the will), must name a responsible adult to execute it. Though an executor does not need to be a relative, generally close relations and friends are tapped for this role. The official duties of an executor do not begin until the death of the testator, but ideally, a designated executor has the opportunity to understand the terms of the will and related information, as well as their responsibilities, before jumping into action.
Fiduciary Obligations and Executor Bonds
For legal, estate and tax purposes, a person who has died becomes known as the decedent, and the person named to execute their will is known as the executor.
Committing to serving as an executor is not an honorary duty: an executor has a long to-do list, and a legal, “fiduciary” obligation to act in the best interest of the estate and beneficiaries. Typically, upon the death of the testator, it is the executor who must file the death certificate, along with the will in probate court. This begins the public process of probate—-the reconciliation of the debts and assets of the decedent. As Johnson Legal explains, “Once the court legally recognizes…the executor, they have the power to act on behalf of the decedent’s estate. This means the executor has to fulfill the probate process by administering the estate.”
Before granting permission for an executor to act on behalf of the decedent’s estate, it’s common for probate courts to require procurement of an executor bond. Essentially, an executor bond is a financial guarantee that the executor will faithfully carry out their duties in accordance with the law. Colonial Surety Company, a direct, national writer of executor and other fiduciary bonds, makes it quick and easy for executors in every state to get bonded. At Colonial Surety Company the steps to obtain an executor bond are simple: get an online quote, fill in the information, and enter a payment method. An executor bond that meets specific court requirements can then be instantly downloaded and e-filed or printed from anywhere—even while initiating the necessary probate process at court.
Executors Must Secure and Manage Assets
Before any assets can be distributed to beneficiaries in accordance with the will, an executor must inventory and secure all the assets of the deceased, including property, which must be kept safe until the estate is closed. Collins Law Group explains that an executor must follow statutory guidelines and timelines to notify creditors that the estate is in probate, and allow them to file claims. Following the supervision of the probate court, the executor then pays off the valid debts of the decedent. Executors, as attorneys point out, can find the settlement of debt quite challenging:
The Executor of an estate may need to make controversial, or unwelcome, decisions that could impact the inheritance ultimately passed down to beneficiaries of the estate. For example, if your estate lacks sufficient liquid assets to pay all approved claims, estate assets will need to be sold to pay those claims. Beneficiaries of the estate may not agree with the Executor’s decision regarding which assets to sell. The person who serves as the Executor of your estate will need to have the ability to set aside, or at least compartmentalize, his/her emotions relating to your death and focus on the steps that must be taken to preserve your estate assets and initiate the probate process.
Once the debts, including the taxes of the decedent are paid out from the assets of the estate, the executor can turn attention to the distribution of assets to beneficiaries in accordance with the intentions expressed in a will. Ideally, the executor has carefully managed the expectations of beneficiaries through diligent communication throughout the probate process. Johnson Legal reminds us:
The executor does not get to decide who gets what. It is the fiduciary duty of the executor to distribute the decedent’s estate funds as stated in the will. The executor does not have the power to go against the will or change what the will says. One of their primary responsibilities is distributing the deceased person’s estate assets to their beneficiaries. Usually, the decedent leaves specific instructions for the executor to follow. As the executor of the decedent’s will, this person is bound to carry out the will as the decedent defined.
Barring complications, probate commonly takes from several months to a year. Many states have developed expedited processes, especially for modest estates. Unpaid taxes, debts, disagreements among family members or contested wills are examples of what can cause complexities and delays during probate. It’s wise for executors to resolve conflicts before they spiral into probate litigation, which is typically time consuming and costly, and can take a permanent toll on relationships. Executors must of course keep careful documentation of all the transactions conducted on behalf of the estate: the probate court will expect an accounting as the process wraps up.
Fiduciary and Court Bond Services for Attorneys
In addition to making it easy and speedy for executors and other fiduciaries to directly obtain their required bonds, Colonial Surety Company also provides a complimentary business service for attorneys: The Partnership Account® for Attorneys.
Immediately upon signup, you will access your private, digital dashboard, and can instantly quote, purchase, and then download or print exactly the court, estate, or fiduciary bond needed for every client and case, including:
- Probate & Estate: Executor, Administrator, and Personal Representative.
- Fiduciary: Guardian and Conservator.
- Civil Litigation: Appeal, Supersedeas, Replevin, and TRO.
Why Attorneys Choose The Partnership Account®:
- Instant Issuance: Meet even the most specific obligee requirements and e-file before you leave the courthouse.
- Direct: Eliminate broker time-drains and the fees of intermediaries
- Flexible Checkout: Pay on behalf of your client or send them a secure link to complete the purchase.
- Nationwide Compliance: Every bond issued is compliant with state-specific court requirements.
Colonial Surety Company has been a trusted surety bond writer since 1930. We are rated “A” Excellent by A.M. Best, ensuring you and your clients receive outstanding service on every bonding requirement.
Ready to simplify your bonding process?
